1953-05-21 — Page 9

Freer Trade Need

Addressing members of the Liverpool Chamber of Commerce, Mr

Maudling, Economic Secretary to the Treasury refurred to "the final collapse of the postwar boom" during 1932. Tho bourn, was disappearing before the outbreak of war in Koren, he said, but it was given a new lease of life when nalluns

embarked up stockpiling and have since been either drastically

rearmament programmes which

scaled down or completed.

Now, Mr Maudling observed, Britain's economy is in a “very. much healthier state" than was a year or 10 months ago, but if we are to continue garu- our living as nation in

world Increasingly competitive "we must have a competitive home market as well thriving export trade,

Init

concern

3.

At the moment, wouhl scem, we have the former hot not the latter, and there is in Government quar- lers on this account with 11 tendency to blame other cour tries for maintaining barriers of one kind or another against British goods. For example,

opinion,

the Chancellor of the Ex- chequer expressed the

thut the manny words, official Government policy of trade with no aid from America

in so

THE CHINA MAIL, THURSDAY, MAY 21, 1953.

In Japanese Coal

Speculation In City Over Bank Credit

The apparent lack of omcial concern over the rising trend of bank credit is causing much specu- lation in the City.

During the past five months the total of advances of the London clearing banks has been rising almost as rapidly as it fell over the first twelve months of the new monetary policy period.

་

It I pointed out that the road transport may be obtained Government has not only done from the banks. nothing to check this movement, In some quarters It is suggeste: but has recently taken steps that that these events may indicate to accentuate it--by (that the authorities are becoening may ind relaxing export credit restric-more concerned over the possi- tons and indicating that Anates billy of a trade recession and are for purchasing do-nationalised accordingly thinking in terms of mtd counter-deflationary mea- sures,

Insurance On 'Queens" Increased

•

The Cunard Company have decided to increase the value of the liners Queen Mary and Queen to achieve economie indepen-Elizabells from £7 millions to

dence is out of the question so long as there is so much dis- crimination there against im- ports.

WHAT RIGHT?

are in What burrlers there America to freer flowing trade with Britak have been thero long enough,

They

are not post-war creations, and have

BUX-

manufac-

never been successfully

mounted by British

now became necessary If we are to pay our way.

ما

TREND REVERSAL

Under the pressure of the addi- tional rcatraints that the Chancellor of the Exchequer imposed on the bunks lending activities when he introduced his new monetary policy in Novem- ber, 1951, the credit tells of the Landon clearing, banks declined in the succeeding year by £182mm. to £1,743m., on average fall of £15m, per month. At that point. however, the trend was sharply

reversed and the tendency since has been upwards.

£8,600,000 for insurance pur-

In posts. addition, the amount

The clearing banks statement placed on total-loss-only condi-

for April showed that the leans hons for "increased value" has

total hus now climbed to heen advanced from £134

alllions

£1,814m. This means that during rach

£2,150,000 which makes the total insured the past five months the banks have been gonting additional the linera values of

£10%

credit at a net rate of £14m. per increase of mouth and that very nearly one- millions enchan £2 millions,

halt of the cut in bank lending intially achieved by the new.

has been policy

The present policies expire at furers on the scale which hay the end of this month and the nonclasy amount involved in the increases restored. will be shared among the man Banking quarters have pointed marine insurance centres, of out that it could not be expected which Liverpool is one of the that loan. totals would continue to biggest in the world. The rates decline at the rate attained in the paid are about 30s. per £100 for Ant few months after the intro- monetary the risks insurance, and about, duction of the new

£100 for

insurance policy-especially once the fall in 155. per

commodity prices, which greatly against total loss.

helped them to reduce their lend- ing figures in 1962, had come to an end.

Moreover, there is little pros- peel of lower tariffs with n Hepublican administration

nice in the U.S.A. office

But if it is right for Americas tariffs against imports to be lowered, it is equally right for oura to be lowered too, but there has been no disposition on the part of the British Government

in this to take any steps

dirve- tion. Indeed, there is a demand throughout Britla for domestic

a

Under present conditions liner of the size of the Queen Mary (B1,237 tons), bullt in 1830 at a cost of £4 millons, or cne like the Queen Elizabeth (83,037 tons), built in 1940 tar 45 millions, would cost at least to be permanently £20 millions to build today.

These increases are indications Japan, and even Amerien her-of the world marine insurance thet, have wearket's capacity to absorb the self. to criticise American policy huge modern increase in shipping

CMWs

from Germany, 1

against cheap foreign

this connection?

But,

not only is there a move- ment in Britain to ban the im- portation of foreign goods which could successfully compete with similar goods made in Britain, but there is even

a seluctance

to admit goods of Empire origin.

[L

is considered

red quite proper,

of course, for foreign-or Em-

pire-produced raw materials

to

valties.

Japanese

Yards Having

Difficulties

NO INCLINATION

Even in Lombard Street, how- ever. It is conceded that the pace of the upward movænen! in lens- ing figures during the pan fow months may be at least partly ex- planed by a tendency ca the part of many of the banks to interpret

a little less stringently than they were doing up to six months ago the rovised ofleiat directive on bank lending issued at the time of the Introduction of the new monotary policy.

The authorities have 50 far shown no inclination to slam the rapid re-expansion of bank credit. There has been no sign of any attempt to tighten overall con- trols on the quantity of "credit," be imported into Britain and

For the day-to-day requirements of

market the Money

have. indeed the cheaper they are the

London, May 20.

usually been covered when better we are pleased-since we

today's necessary through official open cannot do without them.. Fur- ther, no objection has even beon Financial Times drew attention market operations, and visits by difficulties of the discount houses to the Bank of

for ex-

A

In message

the tu

and rubber from Malayonably to

ample. There is an urgent need for freer world construction of 300,000

gross

A

raised in Britain because of the Japanese shipbuilding industry. England for aid nt penalty rates shipment cheaply-produced

ut

This paper's

Tokyo correspon- Į have been kept to a minimum.

reques!! food and raw materials from the dent gave aletalls of the

Similarly, official short-term Empire America cocoa and

made by Japanese shipbuilders debt operations have been corried bauxite from West Africa, tin

ou! 1 such a way as to keep the for subsidy loans to help them

for the banks in

fiquld relatively secure contracts

cross position and therefore with an of vessels during the last adequate margin for expanding half of the current fiscal year the loans. Finally, although the from March, 1953 to April 1954. upward movement in bank loang Other requests made by the had got well into its stride when Japanese shipbuilding industry the Chancellor of the Exchequer ogociation to the Transportu opened his Budget, his state- tion Ministry were also given ment

trade, but it is unrealistic to tons expect America to take the first sleps towards it alone. Liver pool Journal of Commerce,

Grain Prices prominence in the message.

In Chicago

!

Chicago, May 20. Prices of grain futures closed today as follows:-

Wheat-price per bushel

Spot

May

July

September

December.

March Corn

Spot

3,14 nominat 2.11-2.13

3.10-2.1834 7.21%-1

1.04% 15T2-1.50%

1.523%-% 1.5014

May

July

September

December

March

Rye

May

July

0414

Jub

Soybeans

Spot

7314-72!4 7312-2

3.10

May

3.01-3.0322

July

2014-15

2.03

"

2.07

August.

September,

November January

"If 10me such concerted attempt Is not made to en- courage overseas shipbuilding orders, the arcociation tears that all slipways throughout Japan may be idle by the end Financial of the year": the Times correspondent wrote Reuter.

Taiwan Sugar

For Egypt

included no reference to the nerd for greater restant on the part of the banks towards applications advances,

for

new

MORE MONEY NEEDED

It is suggested in the Caty that the unconcern of the authorities at the present arend of bank lend- ing figures becomes all the more significant In the light of the feet thalt certain recent official decisions will almost certainly bring still heavier demands for

bank accommodation,

Imports From

Red China

Tokyo, May 20. Japan Imported more Мал 15,000

coal tons of from Communist China in April,

783

According to the Minis try of International Trade and Industry, (otal coal imperle amounted to 321.- decline of About 100,000 tona from March, due lo the ending of the emergency coal Im- port programino arising from the coat sirike.

Of the total, coking coal comprised roughly 265,000 tons, of which 15.000 came front

Communist China, the remainder from this United States: gan-making coal, 20,000 tons from the United States and Aus- tralla: and 30.571 tons of which 22,827 tons wero from Indo China. France«. Presse.

anthracite,

HONGKONG

7

SHARE MARKET

(From Our Correspondent)

Business done on the Slock Exchange this morning umount- ed to $374,170.00. Noon quota- on and the morning's trans- actions:-

Cash Available

For The Right Type Of Shares

(By Norman Crump, Sunday Times City Editor); While markets have been relatively quiet, a number of interesting developments occurred.

MESSAGERIES

P.O. Box 03. (Queen's Bldg.

M

Quiwarde